Sec. 17-1.3. Fiscal year taxpayers

(a) A taxpayer which reports on the basis of a fiscal year for Federal income tax purposes must report on the same basis for purposes of article 32 of the Tax Law. A fiscal year is a period not longer than 12 calendar months, or any shorter period beginning on the date the taxpayer becomes subject to tax and ending on the last day of any month other than December. A fiscal year also includes, in the case of a taxpayer which changes the period on the basis of which it keeps its books from a calendar year to a fiscal year or from one fiscal year to another fiscal year, the period from the close of its last calendar or fiscal year up to the date designated as the close of its new fiscal year. A fiscal year also includes a 52-53-week accounting period if such period has been elected by the taxpayer.

(b) A taxpayer reporting on a fiscal year basis must keep its books on such basis.